An Analysis of Recent Reforms In the Banking Sector and Their Implications for Financial Stability and Efficiency

Abstract

Technological developments, economic pressures, and regulatory reforms are causing major changes in the Indian banking sector. This dissertation explores the current measures taken to improve the health of the financial system in the wake of the pandemic outbreak. The Reserve Bank of India (RBI) adopted reforms like as more stringent capital adequacy standards and open banking initiatives between 2020 and 2024 are the subject of the analysis. Evaluating the effects of these reforms on the stability and efficiency of the industry is the study's main goal. It looks at how well the reforms have worked to accomplish their objectives and considers any negative effects that might arise, including tighter capital requirements limiting small enterprises' access to credit. The dissertation's overall goal is to offer insightful information about the opportunities and difficulties the Indian banking industry faces. The study aims to provide guidance for policy decisions that support financial stability, operational efficiency, and inclusive growth in the Indian economy by assessing the recent reforms and their ramifications.